A Note on the Cuban Cigar industry

General Environment abstract: 1. Economic segment: Cuba is command-economy, and is unperturbed a poor country. The GNP per capita of 2002 is just $1700. The domestic market is non in the perfect situation. The governance of Cuban still has to reflexion trade deficit, foreign exchange and energy problems. (Mild threat) 2. Political-Legal segment: In 1990s, Cuban establishment implemented an austerity program to nobble through the crisis and Helms-Burton Act added the burden to Cuban economy. However, the US government punished the economy of Cuban. (Threat) 3. Socio cultural segment: In 2002, Cuba had the initiation of 11,224,321,which including 300 million cigar smokers. The traditional way of making baccy is through families manufacture. The cigar industry in Cuban has a dogged history. (Opportunity) 4. Technological segment: In the past, people produced cigar with their hands. Now, people adopt to use machines to produce cigar instead of using hands. Sometimes, hand do and machine-made will be combined in the producing processes. decline for, the new agricultural methods are introduced to people to improve the causal agency of tobacco plants. (Opportunity) 5. Global segment: Although the embargo still affects the Cuban exports, former U.S. presidents visited in 2002 may improve the relationship mingled with Cuban and the U.S. The market share in 2000 is U.S. 37%, Spain 42%, and France 33%. Cuban cigar exports increase slightly annually.

(Opportunity) Task Environment compend: 1. Threat of New Entrants: low. The industry works on economies of scale. both corporations co ntrol the distribution of Cuban cigar cosmos! wide. (Opportunity) 2. negociate Power of Suppliers: High. Cuban government is the only buyer of the output from the private farms. (Threat) 3. negotiate power of buyers: High. The exclusive dealers distribute Havana cigar throughout the introduction and only these dealers have access to the cigar supply. (Threat) 4. Threat of substitute point of intersection:... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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